TDS and TCS Rates and Threshold Limit Changes and New Rates wef 1 June 2016

The Income tax department has made many changes in TDS and TCS rates and threshold limit wich are applicable from 1 June 2016.

The Department wants to catch more and more people in context of TDS and TCS. In this regard new rule of TCS in which sale of goods of services in cash above Rs. 2 Lakh attracts 1% TCS and the motor vehicle above Rs. 10 lakh attracts 1% TCS.

So the changes are major and you should know about the new rates as well as new threshold limit for TDS and TCS applicable from 1 June 2016.

Changes in TDS Threshold Limit wef 01.06.2016

Present Section

Heads

Existing Threshold Limit (Rs.)

Proposed Threshold Limit (Rs.)

192A

Payment of accumulated balance due to
an employee in EPF

30,000

50,000

194BB

Winnings Form Horse Race

5,000

10,000

194C

Payments to Contractors

Aggregate annual limit of 75,000

Aggregate annual limit of 1,00,000

194LA

Payment of Compensation on acquisition
of certain Immovable Property

2,00,000

2,50,000

194D

Insurance Commission

20,000

15,000

194G

Commission on sale of lottery tickets

1,000

15,000

194H

Commission on brokerage

5,000

15,000

TDS and TCS Rates and Threshold Limit Changes and New Rates wef 1 June 2016

Changes in TDS rates wef 01.06.2016

Present Section

Heads

Existing Rate of TDS (%)

Proposed Rate of TDS (%)

194DA

Payment in
respect of Life Insurance Policy

2%

1%

194EE

Payment in
respect of NSS Deposits

20%

10%

194D

Insurance
Commission

10%

5%

194G

Commission
on sale of lottery tickets

10%

5%

194H

Commission
on brokerage

10%

5%

194K

Income in
respect of units

To be
omitted w.e.f 01.06.2016

–

194L

Payment of
Compensation on acquisition of Capital Asset

To be
omitted w.e.f 01.06.2016

–

Changes in TCS rates wef 01.06.2016

Present Section

Heads

Existing Rate of TCS (%)

Proposed Rate of TCS (%)

206C

Sale of motor vehicle >Rs.10lacs

-

1%

206C

Sale in goods/services in cash
>2 lacs(other than bullion and jewellery)(other than payments on which TDS
is made)